Tuesday, March 8, 2016

Oil will not go much higher than $40

I cant imagine crude is going to rally much further than where it is right now. If you do continue to see crude oil get a good deal stronger, and I don't think its going to happen, it would be detrimental to stock prices.

If you take a look at broader periods, 1 or 2 year periods, instead of 2 or 3 month periods, the correlation between crude oil and stock prices are in contravention to each other. That's just what history has shown us over the course of the last 20 something years. The last 2 or 3 months is a different story.